Bill Text: TX HB2977 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to methods of computing interest charges on certain consumer loans.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-03-22 - Referred to Investments & Financial Services [HB2977 Detail]
Download: Texas-2017-HB2977-Introduced.html
| 85R4817 EES-F | ||
| By: Longoria | H.B. No. 2977 | |
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| relating to methods of computing interest charges on certain | ||
| consumer loans. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 342.201, Finance Code, is amended by | ||
| adding Subsection (e-1) to read as follows: | ||
| (e-1) The interest charge under Subsection (e) must be | ||
| contracted for, charged, or received using the scheduled | ||
| installment earnings method or the true daily earnings method under | ||
| one of the following methods: | ||
| (1) applying the applicable daily rate to each part of | ||
| the unpaid principal balance corresponding to the brackets | ||
| described by Subsection (e) for the actual or scheduled number of | ||
| days during a payment period; or | ||
| (2) applying a single equivalent daily rate to the | ||
| unpaid principal balance for the actual or scheduled number of days | ||
| during a payment period, where the single equivalent daily rate is | ||
| determined at the inception of the loan using the scheduled | ||
| installment earnings method and would earn an amount of interest | ||
| authorized under Subsection (e) if the debt were paid to maturity | ||
| according to the schedule of payments. | ||
| SECTION 2. This Act takes effect September 1, 2017. | ||
